CMTA SALIENT QUESTIONS

1. Importation begins/importation ends

(Sec 103)

Importation begins when the carrying vessel or aircraft enters the

Philippine territory with the intention to unload therein.

Importation is deemed terminated when:

(a) The duties, taxes and other charges due upon the goods have
been paid or secured to be paid, at the port of entry unless the goods
are free from duties, taxes and other charges and legal permit for
withdrawal has been granted: or

(b) In case the goods are deemed free of duties, taxes and other
charges, the goods have legally left the jurisdiction of the Bureau.

2. Types of importation

Free Import/Export (Sec 116)

Unless otherwise provided by law or regulation, all goods may be

freely imported into and exported from the Philippines without need
for import and export permits, clearances or licenses.

Regulated Import/Export (Sec 117)

Goods which are subject to regulation shall be imported or exported

only after securing the necessary goods declaration or export
declaration, clearances, licenses, and any other requirements, prior
to importation or exportation. In case of importation, submission of
requirements after arrival of the goods but prior to release from
customs custody shall be allowed but only in cases provided for by
governing laws or regulations.

Prohibited (Sec 118)

The importation and exportation of the following goods are
prohibited

Restricted (Sec 119)

Except when authorized by law or regulation, the importation and

exportation of the following restricted goods are prohibited
3. Meaning of relief consignment

(Sec 120)

Goods such as food, medicine, equipment and materials for shelter,

donated or leased to government institutions and accredited private
entities for free distribution to or use of victims of calamities shall be
treated and entered as relief consignment.

Upon declaration of a state of calamity, clearance of relief

consignment shall be a matter of priority and subject to a simplified
customs procedure.

4. Meaning of de minimis importation

(Sec 423)

No duties and taxes shall be collected on goods with an FOB or FCA

value often thousand pesos (P10,000.00) or below. The Secretary of
Finance shall adjust the de minimis value as provided herein every
three (3) years after the effectivity of this Act.  The value herein
stated shall be adjusted to its present value using the CPI, as
published by the PSA.

5. Define “returning resident”

(Sec 800 sub f)

For purposes of this section, the phrase "returning residents" shall

refer to nationals who have stayed in a foreign country for a period
of at least sis (6) months. Returning residents shall have tax and duty
exemption on personal and household effects

6. Conditions for tax and duty exemptions of the personal and household of
returning residents

(Sec 800 sub f)

Provided, That:
 (1) It shall not be in commercial quantities;

(2) It is not intended for barter, sale or for hire; and

(3) Limited to the FCA or FOB value of:

(i) Three hundred fifty thousand pesos (P350,000.00) for those who
have stayed in a foreign country for at least ten (10) years and have
not availed of this privilege within ten (10) years prior to returning
resident's arrival;

(ii) Two hundred fifty thousand pesos (P250,000.00) for those who
have stayed in a foreign country for a period of at least five (5) but
not more than ten (10) years and have not availed of this privilege
within five (5) years prior to returning resident's arrival; or
(iii) One hundred fifty thousand pesos (P150,000.00) for those who
have stayed in a foreign country for a period of less than five (5)
years and have not availed of this privilege within six (6) months prior
to returning resident's arrival.

Any amount in excess of the above-stated threshold shall be subject

to the corresponding duties and taxes under this Act.

7. Is there additional tax and duty exemptions granted to returning OFW’s?

(Sec 800 sub f)

In addition to the privileges granted under the immediately

preceding paragraph, returning Overseas Filipino Workers (OFWs)
shall have the privilege to bring in, tax and duty-free, home
appliances and other durables, limited to one of every kind once in a
given calendar year accompanying them on their return, or arriving
within a reasonable time which, barring unforeseen and fortuitous
events, in no case shall exceed sixty (60) days after every returning
OFW's return upon presentation of their original passport at the port
of entry: Provided, That any amount in excess of FCA value of one
hundred fifty thousand pesos (P150,000.0,0) for personal and
household effects or of the number of duty-free appliances as
provided for under this section, shall be subject to the corresponding
taxes and duties: Provided, further, That every three (3) years after
the effectivity of this Act, the Secretary of Finance shall adjust the
 amount herein stated to its present value using the CPI as published
by the PSA;

8. What are the conditions to avail of the tax and duty exemptions of
balikbayan boxes?

(Sec 800 sub g)

Residents of the Philippines, OFWs or other Filipinos while residing

abroad or upon their return to the Philippines shall be allowed to
bring in or send to their families or relatives in the Philippines
balikbayan boxes which shall be exempt from applicable duties and
taxes imposed under the NIRC of 1997, as amended: Provided, That
balikbayan boxes shall contain personal and household effects only
and shall neither be in commercial quantities nor intended for barter,
sale or for hire and that the FCA value of which shall not exceed one
hundred fifty thousand pesos (P150,000.00): Provided, further, That
every three (3) years after the effectivity of this Act, the Secretary of
Finance shall adjust the amount herein stated to its present value
using the CPI as published by the PSA: Provided, finally, That
residents of the Philippines, OFWs or other Filipinos can only avail of
this privilege up to three (3) times in a calendar year. Any amount in
excess of the allowable non-dutiable value shall be subject to the
applicable duties and taxes
9. What is a goods declaration?

(Sec 102 sub y)

Goods Declaration refers to a statement made in the manner

prescribed by the Bureau and other appropriate agencies, by which
the persons concerned indicate the procedure to be observed in the
application for the entry or admission of imported goods and the
particulars of which the customs administration shall require

10. What is a provisional goods declaration?

(Sec 403)

Where the declarant does not have all the information or supporting
documents required to complete the goods declaration, the lodging
of a provisional goods declaration may be allowed: Provided, That it
substantially contains the necessary information required by the
Bureau and the declarant undertakes to complete the information or
submit the supporting documents within forty-five (45) days from the
filing of the provisional goods declaration, which period may be
extended by the Bureau for another forty-five (45) days for valid
reasons.

If the Bureau accepts a provisional goods declaration, the duty

treatment of the goods shall not be different from that of goods with
complete declaration. 'I Goods under a provisional goods declaration
may be released upon posting of any required security equivalent to
the amount ascertained to be the applicable duties and taxes.

11. Prescriptive period of the assessment and collection of customs duties

(Sec 407)

Goods declaration must be lodged within fifteen (15) days from the
date of discharge of the last package from the vessel or aircraft. The
period to file the goods declaration may, upon request, be extended
on valid grounds for another fifteen (15) days: Provided, That the
request is made before the expiration of the original period within
which to file the goods declaration: Provided, however, That the
period of the lodgment of the goods declaration maybe adjusted by
the Commissioner.
12. Prescriptive period for claims of refund of customs duties

(Sec 913)

All claims and application for refund of duties and taxes shall be
made in writing and filed with the Bureau within twelve (12) months
from the date of payment of duties and taxes.
13. Differentiate “misdeclaration”, “misclassification”, and “undervaluation” in
goods declaration

(Sec 1499)

Misdeclaration as to quantity, quality, description, weight, or

measurement of the goods, or misclassification through insufficient
or wrong description of the goods or use of wrong tariff heading
resulting to a discrepancy in duty and tax to be paid between what is
legally determined upon assessment and what is declared, shall be
subject to a surcharge equivalent to two hundred fifty percent
(250%) of the duty and tax due. No surcharge shall be imposed when
the discrepancy in duty is less than ten percent (10%), or when the
declared tariff heading is rejected in a formal customs dispute
settlement process involving difficult or highly technical question of
tariff classification, or when the tariff classification declaration relied
on an official government ruling.

There is undervaluation when: (a) the declared value fails to disclose

in full the price actually paid or payable or any dutiable adjustment
to the price actually paid or payable; or (b) when an incorrect
valuation method is used or the valuation rules are not properly
observed, resulting in a discrepancy in duty and tax to be paid
between what is legally determined as the correct value against the
declared value. When the undervaluation is established without the
need to go through the formal dispute settlement process provided
for in this Act, a surcharge shall be imposed equivalent to two
hundred fifty percent (250%) of the duty and tax due. No surcharge
shall be imposed when the discrepancy in duly is less than ten
percent (10%); or the declared value is rejected as a result of an
official ruling or decision under the customs dispute settlement
process involving difficult or highly technical question relating to the
application of customs valuation rules.

14. On what instances that imported goods are deemed abandoned?

(Sec 1129)

Imported goods are deemed abandoned under any of the following

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(a) When the owner, importer, or consignee of the imported goods

expressly signifies in writing to the District Collector the intention to
abandon the same; or
 (b) When the owner, importer, consignee, or interested party after
due notice, fails to file the goods declaration within the prescribed
period in Section 407 of this Act: Provided, That the term goods
declaration shall include provisional or incomplete goods declaration
deemed valid by the Bureau as provided in Section 403 of this Act. 
For this purpose, it is the duty of the District Collector to post a list of
all packages discharged and their consignees, whether electronically
or physically in the District Office, or send a notice to the consignee
within five (5) days from the date of discharge; or

(c) Having filed such goods declaration, the owner, importer,

consignee or interested party after due notice, fails to pay the
assessed duties, taxes and other charges thereon, or, if the regulated
goods failed to comply with Section 117 of this Act, within fifteen
(15) days from the date of final assessment: Provided, That if such
regulated goods are subject of an alert order and the assessed duties,
taxes and other charges thereof are not paid within fifteen (15) days
from notification by the Bureau of the resolution of the alert order,
the same shall also be deemed abandoned; or

(d) Having paid the assessed duties, taxes and other charges, the
owner, importer or consignee or interested party after due notice,
fails to claim the goods within thirty (30) days from payment.  For
this purpose, the arrastre or warehouse operator shall report the
unclaimed goods to the District Collector for disposition pursuant to
the provisions of this Act; or

(e) When the owner or importer fails to claim goods in customs

bonded warehouses within the prescribed period.

15. Doctrine of primary jurisdiction

The doctrine of primary jurisdiction holds that if a case is such that its
determination requires the expertise, specialized training and
knowledge of an administrative body, relief must first be obtained in
an administrative proceeding before resort to the courts is had even
if the matter may well be within their proper jurisdiction.10 It applies
where a claim is originally cognizable in the courts and comes into
play whenever enforcement of the claim requires the resolution of
issues which, under a regulatory scheme, have been placed within
the special competence of an administrative agency. In such a case,
the court in which the claim is sought to be enforced may suspend
 the judicial process pending referral of such issues to the
administrative body for its view11 or, if the parties would not be
unfairly disadvantaged, dismiss the case without prejudice.

16. Remedies of the government in the collection of customs duties

(Sec 1132 – 1133)

Remedies for the Collection of Duties, Taxes, Fines, Surcharges,

Interests, and Other Charges. – The civil remedies for the collection
of import duties, taxes, fees, or charges resulting from the conduct of
a post clearance audit shall be obtained
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(a) Distraint of goods, chattels, or effects, and other personal

property of whatever character, including stocks and other securities,
debts, credits, bank accounts, and interest in and rights to personal
property, and by levy upon real property and interest in rights to real
property; and (b) Civil or criminal action.

Either or both of these remedies may be pursued at the discretion of

the Bureau: Provided, That the remedies of distraint and levy shall
not be allowed when the amount of duties and taxes involved is not
more than ten thousand pesos (10,000.00).

The Bureau shall advance the amounts needed to defray costs of

collection by means of civil or criminal action, including the
preservation or transportation of personal property distrained and
the advertisement and sale thereof, as well as of real property and
improvements thereon.

Constructive Distraint of the Property. – To safeguard the interest of

the government, the Commissioner may place under constructive
distraint the property of a delinquent importer who, in the opinion of
the Commissioner, is retiring from any business subject to duty and
tax, or is intending to leave the Philippines, or to remove the
property therefrom, or to hide or conceal the property, or to perform
any act tending to obstruct the proceedings for collecting the duty
and tax due, or which may be due.

17. Remedies of the importer/taxpayer

(Sec 1106)
When a ruling or decision of the District Collector or customs officer
involving goods with valuation, rules of origin, and other customs
issues is made, except the fixing of fines in seizure cases, the party
adversely affected may appeal by way of protest against such ruling
or decision by presenting to the Commissioner at the time when
payment of the amount claimed to be due the government is made,
or within fifteen (15) days thereafter, a written protest setting forth
the objection to the ruling or decision in question and the reasons
therefore.

Subject to the approval of the Secretary of Finance, the

Commissioner shall provide such rules and regulations as to the
requirement for payment or nonpayment of the disputed amount
and in case of nonpayment, the release of the importation under
protest upon posting of sufficient security.